NiCds have been banned in Europe for a while now, as cadmium is toxic and on the list of chemicals restricted under the RoHS legislation; I’m surprised you can still get them in the US.
I agree information on battery charging is confusing and contradictory. Even the battery manufacturers only agree with each other up to a certain point. There’s a reason for this - battery chemistry is complicated, and there are many variables to be accounted for to completely characterise a batterys charging and discharging profiles.
The memory effect is not a myth (sorry Cecil, you’re just plain wrong on this occasion), and I’m with FluffyBob in being fond of the respected BatteryUniversity.com. Here is an explanation of the mechanism behind the memory effect phenomenon. NiMH batteries aren’t as bad as NiCds in this respect though.
Cheshire Human has a valid point - charging cells in series is very much a compromise, and this is when the cells are all from the same batch and have lived identical lives. Mixing cells in this way is definitely a no-no. The problem lies with battery chargers - they are, almost without exception, pieces of shit. Their designs are the product of a race-to-the-bottom, and are priced to compete with disposable alkalines and the like. It wasn’t so bad with NiCd chargers, as they relied on a characteristic hump in the cell voltage to indicate that the cell was reaching full charge, something which was easy, cheap and reliable. This hump is much less pronounced with NiMH cells, and with some types is absent altogether, and so the only proper way to charge them is to monitor the temperature. This is more difficult and expensive to do than might be imagined, and so most chargers either make some sort of attempt to find that elusive hump or have some sort of inadequate temperature monitoring system. Invariably there is a timeout period so the high-current charging is stopped if the voltage or temperature termination criteria aren’t detected.
Small point: You can charge NiCd cells with a NiMH charger, but not vice-versa.
NiCds, and to a lesser extent NiMHs, will benefit from the occasional deep discharge. But beware of discharging a battery pack with the cells in series, as if discharged too low the weaker cells will be overwhelmed by the stronger cells and will be permanently knacked by the phenomenon of “cell reversal”. It is generally accepted that discharging to 1 volt per cell is safe, but no lower.
Some good news on the self-discharge front: A small number of manufacturers have developed NiMH cells with very low self discharge characteristics, so these can now be used in previously verboten applications like smoke alarms, doorbells and remote controls. GP ReCykos are pretty good, but the best by far are Sanyo eneloop (both NiMH). I’ve been working with these in some charger designs, and they really are a major step. The previous generation of eneloops claimed 12 months of useful charge retention; the latest generation now claim 36 months. The charging efficiency of new NiMH designs (not just the Sanyos) is much improved, as evidenced by very small temperature rise during the bulk of the fast-charge period. Older designs got much warmer right from the onset of charging.